2019S0348-1 03/05/19
By: Swanson H.B. No. 3790
A BILL TO BE ENTITLED
AN ACT
relating to judicial review of certain regulations that apply to
state licensees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act may be cited as the Regulations with
Economic Impact in Need of Scrutiny (REINS) Act.
SECTION 2. Title 2, Occupations Code, is amended by adding
Chapter 60 to read as follows:
CHAPTER 60. REGULATIONS WITH ECONOMIC IMPACT IN NEED OF SCRUTINY
Sec. 60.001. PURPOSE OF CHAPTER. It is the purpose of this
chapter to provide a judicial remedy to ensure that a state licensee
has the right to engage in an occupation or business activity
authorized by and regulated under state law without burdensome or
inconsistent local regulation of the state licensee's occupation or
lawful business activities.
Sec. 60.002. DEFINITIONS. In this chapter:
(1) "Local regulation" means any ordinance, rule, or
regulation adopted by the governing body of a municipality that
establishes requirements for, imposes restrictions on, or
otherwise regulates the business activity of a state licensee
within the municipality or the municipality's extraterritorial
jurisdiction.
(2) "State licensee" means a person or entity that,
under state law, in order to practice the person's occupation or
conduct the entity's business in this state, is required to obtain a
license, permit, registration certificate, or other evidence of
authority from, and is subject to regulation by, a state licensing
authority.
(3) "State licensing authority" means a state agency,
department, board, or commission or the executive or administrative
officer of a state agency, department, board, or commission.
Sec. 60.003. SUIT TO ENJOIN ENFORCEMENT OF LOCAL
REGULATION. (a) A suit to enjoin enforcement of a local
regulation may be brought by a state licensee that is subject to the
local regulation if the local regulation:
(1) establishes requirements for, imposes
restrictions on, or otherwise regulates the business activity of
the state licensee in a manner that is more stringent than the
requirements, restrictions, and regulations imposed on the state
licensee under state law; or
(2) would result in an adverse economic impact on the
state licensee.
(b) A suit under this chapter must be brought in a district
court:
(1) for a judicial district in which any portion of the
territory of the municipality that adopted the local regulation is
located; or
(2) in Travis County.
(c) In a suit under this chapter, the state licensee must
show by a preponderance of the evidence that the local regulation
substantially burdens the state licensee's right to engage in an
occupation authorized by and regulated under state law or would
result in an adverse economic impact on the state licensee. In a
suit under this chapter, the state licensee may submit evidence
regarding the adverse economic impact of similar local regulations
in other jurisdictions inside or outside the state.
(d) If the state licensee meets the preponderance of the
evidence burden required by Subsection (c), the municipality has
the burden of establishing by clear and convincing evidence that
the local regulation the municipality seeks to enforce:
(1) does not conflict with state law; and
(2) is necessary and narrowly tailored to protect
against actual and specific harm to the public health or safety.
(e) The district court may grant any prohibitory or
mandatory relief warranted by the facts, including a temporary
restraining order, temporary injunction, or permanent injunction.
(f) If a state licensee prevails in a suit brought under
this chapter, the court shall award the state licensee court costs
and reasonable and necessary attorney's fees to be paid by the
municipality.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2019.